What makes a good trader?ST
I have found wso to be in general very academic when it comes to trading, but also very quant based. The general theme is that more math = more money. Honestly I feel this is just not the case. Markets are nothing more than the average of all market participant beliefs at a given time. The market is never wrong, it is always right. That does not mean that significant risk adjusted returns cannot be achieved.
I pose this question to all of wso - What makes a good trader?
The most essential trait I feel that makes a good trader is someone that is consistent. Consistency really is key, sure there will be guys that have terrific years but then give it all back the next year. For the profitable traders they will fall somewhere in the extreme of great highs and lows. What creates consistency? Your ability to make decisions under extreme pressure and completely quell the anxiety. A good trader is one that is able to accept when they are wrong and move on to the next trade. Having a mental repitioure is crucial to building consistency.
The second most important trait is that you must come to truly accept the risks associated with trading. You must be willing to realize that any results from trading are the results that you created. Markets provide the ultimate freedom. In most cases (unless carrying extreme size) there is always a way to get in and out.
Third, there needs to be a positive attitude and belief system in place. Good traders believe they have earned their return and do not attribute it to luck.
Your ability to make decisions under extreme pressure and completely quell the anxiety. A good trader is one that is able to accept when they are wrong and move on to the next trade.